The US equities have skipped a Monday ahead passing through a heavy week of market catalysts. The slip has been recorded for different companies. The S&P 500 (^GSPC) fell by 0.79%, or 20.53 points, The Dow (^DJI) declined by 0.84%, or 201.77 points, while the Nasdaq (^IXIC) slipped by 0.62%, or 44.03 points. The Russell 2000 wants to enter the market on the condition that the market should close lower or at least by 20% since August as of 1,740.75 points, thereby indicating the stock point drop to 1,392.59 points or lower than that. According to this, the index had constantly maintained its low on 1,392.22 points on Monday.
The equities are struggling hard to make it up to the stock market low throughout the year. The Federal Reserve has organized a meeting this Tuesday and Wednesday to discuss the final policy of 2018. They wish to warn the stock market investors and brokers about the future price hike and guide them the ways to survive this hike too. The meeting is to be held at Washington D.C. The policymakers are making an announcement of fourth price hike in the current financial year. With the constant low and inflation that has hit the market, the economists still have hope with the Fed moving forward. The Federal Reserve officials are also trying to decide upon more flexible monetary laws basing on the market conditions.
The US President Donald Trump continued to attack the central bank and hit the Federal Reserve as of Monday. He clearly had mentioned in his tweet that he is not expecting the Fed to raise any interest any further and that the dollar is the strongest. No market inflation will hamper the value, he meant. The valuation of the US Dollar has risen to 5.8% but the personal consumption expenditure gauge mentions that the Fed in the inflation is running 2% less than its target, as of October.
The lawmakers have somehow come up with an agreement on expending bills over Trump’s statement regarding the Fed. Although Trump is trying to push a fund worth $5 Billion, the Democrats are unwilling to push the budget for more than $1 Billion. This would mark the third federal funding gap in a row in the financial year of 2018 if the close is realized. A long federal shutdown can be problematic and create a debt maximum perturb. The funding gap in history has already created chaos in the stock market.